Zee Entertainment fires 50% of its workforce at tech centre in Bengaluru

Zee Entertainment Enterprises Ltd (ZEEL) has announced a significant reduction of its workforce, cutting down 50% of its employees at the Technology and Innovation Centre (TIC) in Bengaluru.

The layoffs are part of the company's broader strategy to streamline operations and enhance financial efficiency following the fallout of a potential merger with Sony Pictures Entertainment. The decision, which the company says is led by MD and CEO Punit Goenka, aims to optimize resources and establish a more cost-effective structure to foster growth.

The merger collapse

The dissolution of the merger with Sony has prompted ZEEL to reassess its operational and financial strategies. In response, the company has introduced a three-fold approach focusing on cost reduction, minimizing business overlap, and enhancing content quality to improve margins.

The strategic realignment includes the recent layoffs at the Bengaluru tech centre, which previously boasted over 650 engineers, as part of its effort to reduce expenditures and refocus on core competencies.

Focused on creating exceptional content

“We are laser-focused on creating exceptional content that is rich and engaging for our viewers. We have a huge responsibility to live up to the expectations of billions of viewers across the globe, and we will continue to win their hearts. To achieve this, we need the blend of a creative approach, detailed consumer insights, and futuristic technology solutions," Punit Goenka, MD and CEO of ZEEL, said.

“The core and streamlined team at TIC will now only focus on enabling and empowering us in this process of content creation, distribution and monetization,” Goenka added.

Leveraging tech to enhance content creation

ZEEL said it is focused on leveraging technology to enhance content creation, distribution, and monetization. The company emphasizes the importance of utilizing artificial intelligence (AI) and machine learning (ML) tools to gain deeper insights into consumer preferences. 

Leadership and organizational restructuring

Following the departure of key executives, including Nitin Mittal, the President of Technology and Data, ZEEL has undergone a significant restructuring of its technology and data vertical.

The reorganization assigns new interim responsibilities to key leaders within the company, ensuring a focused approach towards integrating creative content strategies with advanced technological solutions.